I do not agree

I read the following investment suggestions in a well known monthly magazine.

Stocks outperform bonds. Not necessarily. High-yield bond funds have outperformed the S&P 500 on a total return basis in the past 1, 3, 5, and 10 years (as I have documented several times in my publication).

Stocks are stable over the long period. I am not sure who gave him/her this idea. Where was the writer in the last 10 years?

A diversified portfolio provides extra stability. If you diversify you are wasting time and money and you are bound to perform like the averages. If you feel you have to diversify then buy an index fund such as SPY.

You have a chance to outperform the averages if you focus your investment and you concentrate on which sector will be strong given business cycle forces.

To find out more about my in depth view of the markets and my strategy just visit our website https://www.peterdag.com/ where you can review The Peter Dag Portfolio. You can also call me at 1-800-833-2782 to discuss your specific money management needs.

I will be happy to speak to your investment group on how the business cycle impacts investment strategies and the choice of asset classes.

George Dagnino, PhD
Editor, since 1977